Intel, Samsung Shown Up by Smaller Chip Rivals in 2008

Intel and Samsung stayed on top of the global chip market in 2008 by a good margin, but the semiconductor industry was still a tough place to be during the last 12 months, according to research company iSuppli. One reason why the chip industry performed so poorly is that consumers and businesses cut down on their purchases of desktops, notebook, smartphones and server systems as the economy soured. The result is that eight of the top 10 chip companies saw revenues decline from 2007, iSuppli says.

Intel,Samsung and other semiconductor stalwarts continue to dominate the
global chip market, but 2008 proved that smaller and more nimble vendors were
able to increase their sales and shipments in a market saddled with a poor
global economy.

"It's not always good to be king," wrote Dale Ford, an analyst with
iSuppli, which released new research on the global chip market March 11. iSuppli
just released semiconductor sales and rankings for 2008-a year in which eight
of the top 10 suppliers suffered revenue declines.

Among the 300 semiconductor companies in iSuppli's global rankings, 43 percent
achieved flat to positive growth during 2008. According to iSuppli, this means
"the top 10 suppliers significantly underperformed their smaller
rivals."

Ford went on to explain, "Many of these suppliers are focused on
semiconductor segments that performed poorly during the year, including memory,
digital signal processors, analog integrated circuits and standard logic."

For this reason, he said, eight of the top 10-and 15 of the top 25
semiconductor suppliers-experienced declines in revenue compared with 2007.

Finishing out the top five for 2008 were Toshiba,
Texas Instruments and STMicroelectronics,
with revenues of $11.08 billion, $11.07 billion and $10.3 billion,
respectively.

The four suppliers that increased their revenue in 2008 and improved their
market-share rankings most significantly were: Qualcomm, which rose to eighth
place from 14th place in 2007; Broadcom, up to 14th from 19th place; Rohm, up
to 20th from 25th place; and MediaTek, which made the top 25, moving up to 23rd
place from 28th.
The company with the largest revenue decline among the top 10 and top 25 was
Hynix Semiconductor, at 33.4 percent.

Advanced Micro Devices, which made news on March 4 with the
spinoff of Globalfoundries, a separate manufacturing arm, ranked 12th, with
2008 revenues of $5.5 billion.

Editor's Note: Due to an editing error, an earlier version of this article misstated the revenue results from these chip companies. It has now been corrected.

Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.